At least five commercial insurers have removed cover from their policies due to Covid-19, as one in five VAT and/or PAYE construction firms in the UK renew their insurance at the end of March, says Mactavish
Mactavish estimates around one in five VAT and/or PAYE registered construction firms in the UK, some 68,800 in total, will have renewed their insurance at the end of March and beginning of April due to Covid-19.
Mactavish says that this time of year is the busiest for companies renewing their insurance policies, but its research reveals at least five commercial insurers have just removed cover from their policies because of coronavirus.
Because of coronavirus, many will have seen cover removed from their policies and face increased premiums.
Mactavish has warned that insurers are not only removing cover associated with infectious diseases going forward on a D&O and PI type policies but also retrospectively. At least five commercial insurers have removed cover from their policies because of coronavirus.
A fall-out of infectious diseases from commercial insurance
Bruce Hepburn, CEO of Mactavish said: “There has been talk of insurers potentially excluding cover linked to the fall-out of infectious diseases from commercial insurance policies, and we are beginning to see this unfold.
“Over the past few weeks, many construction firms across the country would have received insurance offers and accepted them, but at the last minute, just days or even hours before renewal, elements of their cover were removed.”
“With premiums also rising, remuneration for brokers is increasing at this very difficult time. We have customers getting less cover and paying more for this, whilst insurers and brokers are seeing their financial rewards increase.
“It doesn’t feel like insurers and brokers are sharing the pain of businesses across the UK.”